Real Estate Broker Insider by Philip Kiracofe

R E A L

E S T A T E

BROKER’S INSIDER

Management and sales tools for the residential real estate broker

March 2011 Vol. 42 No. 3

Technology

QR codes gain popularity as marketing tool With Quick Response (QR) codes showing up on everything from televisions to Christmas trees, real estate brokers are flocking to this new low-cost marketing tool. QR codes are square symbols that can be read by iPhones, Android devices, and other smartphones. The phone user downloads an app that reads QR codes, then snaps a photo of the symbol. The barcode directs the phone’s browser to a website.

Ebby Halliday Realtors in Dallas has jumped on the QR bandwagon in a big way. This year, the 1,600-agent company plans to create QR codes for every listing it takes, says Randall Graham, the company’s director of marketing. Ebby Halliday started experimenting with QR codes last year on luxury listings. Graham figured high-end buyers would be more likely to have iPhones and to use the codes. (Continued on page 2)

Industry Trends

After agents complain about dues, broker pulls out of Realtor association Ron Roe considers himself an avid supporter of the National Association of Realtors. He spent 10 years on the board of the South Carolina Association of Realtors, and he routinely made $500 donations to RPAC, the Realtors’ lobbying arm. But Roe doesn’t apologize for ending his 500-agent company’s affiliation with the prominent trade group. His

brokerage, Russell & Jeffcoat Real Estate Inc. of Columbia, SC, recently pulled out of the local Realtor association and dropped the Realtor trademark from its name. Roe says he had little choice but to leave the Realtors, fold. Agents chafed at the $431-ahead annual membership fee collected by the Central Caroli(Continued on page 4)

Condo prices plunge in hard-hit markets Five years ago, buyers of Sunbelt condos were compelled to camp out overnight in front of sales offices. Now, condos in those same markets are so cheap that the price tag looks more like the bottom line on a new car than on a piece of once-hot real estate. “Consumers in the hard-hit regions of Nevada, Arizona, and Florida were able to scoop up condos at absolute bargain basement prices” in the fourth quarter of 2010, says Lawrence Yun, chief economist for the National Association of Realtors. A sampling of condo/co-op prices: In Las Vegas, the median was $60,700. In Phoenix, it was $68,900. And in Miami-Fort Lauderdale, the price was $81,900.

In this issue After big promises, discount broker IggysHouse flames out . . . . . . . . 3 Economist’s study finds real estate competition alive and well . . . . . 6 To move luxury listings, follow these power marketing rules . . . . . . . . 7 Three steps for getting your agents into action . . . . . . . . . . . . . . . . . . 9 Short sales, listing in Realtor.com create confusion . . . . . . . . . . . . . 9

QR codes gain popularity as marketing tool The company started by including QR codes for every listing in its glossy catalog of high-end homes. QR codes keep print marketing relevant by quickly directing consumers to photographs, videos, and other multimedia information about a property. “One of the great aspects of using the QR codes is how it can bring print pages to life,” Graham says. For brokers Where brokers and agents using QR are putting QR codes: codes, combin• On yard signs and in newspaper ing old-fashads to provide more information ioned print with about listings. a new technolo• On agent business cards to gy is a common provide contact information. theme. • On just-sold and just-listed “We’re still postcards. certainly in the early stages,” Graham says. “It’s going to be a way to match traditional media with these new forms of marketing.” One benefit of QR codes: They’re nearly free to produce. Ebby Halliday developed its technology in-house using Microsoft Tag Reader, an open-source tool. “There has really been no cost other than staff time,” Graham says. While Ebby Halliday is ahead of the curve, Graham says he’s been progressing cautiously. “We did quite a bit of planning and research before we went into this space,” he says. “We have definitely been taking it slow and easy.” If you’re considering adding QR codes to your marketing repertoire, Graham says, start by using them yourself. Barcode readers are free and easy to download to your phone. 2

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(Continued from page 1)

QR codes gain acceptance Graham sees no shortage of uses for QR codes. They could go on agents’ business cards, for instance. Or they could lead a newspaper reader to a site listing every open house in a neighborhood. And with Ebby Halliday’s founder celebrating her 100th birthday, the company is using QR codes to distribute information about her life. When Graham shopped for a Christmas tree in December, the tree he bought included a QR code that took him to a site about Fraser firs. And TV manufacturers have begun to include them so shoppers at Best Buy and other retailers can quickly learn about the product. QR codes are a technology that seem custom-tailored to real estate. After all, each property is unique and complex, and only a tiny amount of information can be conveyed in a yard sign or a newspaper ad. 101 uses for QR codes Luxury Portfolio International, the luxury brand of Leading Real Estate Companies of the World, recently introduced QR codes in its full-page advertisements in The Wall Street Journal’s european edition. Meanwhile, LeadingRE says a number of its members throughout the country have begun using QR codes. Duffy Real Estate in Philadelphia is putting QR codes on just-listed cards it sends by direct mail. At William Raveis Real Estate in Connecticut, agents put QR codes on their business cards. At Coco, Early & Associates in Massachusetts, QR codes in print ads take buyers to video presentations about luxury listings. And Halstead Property in New York puts its logo in the QR codes REAL ESTATE BROKER’S INSIDER

and calls them “H-Tags.” “H-Tags have become one of the best solutions for getting information instantaneously,” says Diane M. Ramirez, president of Halstead Property. Peabody & Smith Realty in New Hampshire began using QR codes last year. It puts QR codes on its yard signs and used the symbols when it took a booth at a ski trade show in Boston, says Chrissy Smith, marketing director of Peabody & Smith. The company originally created barcodes for free, but then it hired Barcode Realty to create the codes. One perk of professional help: Peabody & Smith’s logo is in the QR code. The company’s earlier QR codes didn’t include logos. Smith notes that QR codes won’t work miracles. Cell service is spotty in

the mountains of northern New Hampshire, so homebuyers can’t always make use of the QR codes at the moment they see them. And only tech-savvy consumers know what the symbols are. “There definitely still is some confusion,” Smith says. “But people are seeing them “One of the great aspects more and more.” of using the QR codes is And, Smith says, QR how it can bring print codes require so little pages to life. investment and pose so little risk that there’s no reason not to use them. “I’d rather be in front than behind and trying to catch up,” Smith says. Contacts: Randall Graham, Ebby Halliday Cos., 972-980-6665; Diane Ramirez, Halstead Property, 212-381-3203; Chrissy Smith, Peabody & REBI

Business Models

After big promises, discount broker IggysHouse flames out Back in 2007, the owners of discount brokerage IggysHouse.com were so confident in the company’s future that they proposed a $15 million initial public offering and a national expansion. Now, the company’s latest owner acknowledges that the concept was more an expensive lesson than a profit machine. IggysHouse brought in only $2,026 in revenue from January 2010 through July 2010. The IggysHouse.com website has been outsourced to a thirdparty web hosting firm. The big promises and underwhelming performance of IggysHouse serve as a warning for entrepreneurs who want to shake up the real estate industry, and it should provide some comfort to tradi-

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tional brokers who see the old-fashioned sales model as the most viable approach to the business. In 2007, IggysHouse touted plans to run a rebate-driven brokerage that would return money to buyers. It also planned to expand to taking listings and brokering mortgages. In early 2010, Minneapolis-based Webdigs bought IggysHouse and announced plans to sell listing services to sellers. It would post a home on the Multiple Listing Service for $49.99 a month, with no further cost to the seller if the home closed. IggysHouse also offered “a la carte” services to sellers. In an annual report filed in January

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2010, Webdigs was nearly giddy with the possibility of its MLS listing services, offered in Minnesota, Wisconsin, and Florida. A seller of a $300,000 house could pay $18,000 in traditional commissions to sell Broker Bio it, or he could pay The broker: IggysHouse IggysHouse $549.89 The model: First, it was a to list the house on rebate. Then came listing serthe MLS for 12 vices for do-it-yourself sellers. months and keep What’s next: Not much. Owner the difference. Webdigs has pulled the plug on “We believe that the money-losing model. certain savvy confident consumers will quickly see the value in the IggysHouse.com product offering and enjoy the power and control our IggysHouse.com website offers and choose to list their homes with us,”

Webdigs said at the time. Webdigs invested “a significant sum” in marketing IggysHouse (although both of Webdigs’ most recent annual reports indicate that IggysHouse operates from a $300-a-month office in Florida). Sellers weren’t excited about the offerings at IggysHouse, and in its annual report filed in January 2011, Webdigs told investors that IggysHouse faced “financial struggles” and a “dim” future. “To date, IggysHouse.com has been a disappointment,” Webdigs said. “We still remain convinced that the seller controlled low-cost MLS listing model will continue to gain traction as time passes — the advancement of technology will continue to empower consumers to actively manage their own home sellREBI ing process.”

After agents complain about dues, broker pulls out of Realtor association (Continued from page 1) na Realtors Association. That was in addition to the $544-a-year fee for agents to belong to the Multiple Listing Service, which is separate from the Realtors Association. In a difficult economy, agents just didn’t feel they were getting enough from their Realtor membership to justify the cost. It didn’t help that dues for the Central Carolina Realtors Association had steadily risen. “All of our managers and a majority of our agents did not want to have to be members,” he says. “The agents and managers didn’t see the value.” Roe says it wasn’t just struggling agents who wanted to drop their Realtor affiliation. Some top producers also questioned the need for being Realtors.

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Russell & Jeffcoat is the largest firm in the Columbia area, and its departure from the Central Carolina Realtors Association left the group with about 800 members. While many firms aren’t members of the local Realtor association, they’re mostly smaller companies whose departures didn’t create the same shockwaves as Russell & Jeffcoat. NAR and local Realtor associations have an all-or-nothing policy that requires all the agents at a firm to be Realtors. But only a small number of Russell & Jeffcoat’s agents wanted to remain Realtors. That created a dilemma for Roe. To maintain Realtor membership, he could have paid dues for agents who didn’t REAL ESTATE BROKER’S INSIDER

want to pay — but paying for 400 agents would have cost the company $172,400 for a year’s dues. Or he could have fired the large number of agents who no longer were willing to pay to be Realtors. “I had two choices — either pay up, or let people go,” he says. Neither of those options made sense, so Roe picked a third option, which was to sever ties with NAR altogether. “This turned out to be the best decision for the majority of our agents,” he says.

Balancing costs and benefits The switch came with costs of its own. Because the company long known as Russell & Jeffcoat Realtors no longer could use the Realtor trademark, it had to spend more than $50,000 replacing yard signs, business cards, stationery, and other materials that included the word Realtors. Roe says he lost only one agent over the move. That agent was an officer in the Central Carolina Realtors Association and wanted to continue her ties with the group. Russell & Jeffcoat’s defection from the ranks of Realtors was possible only because the local Realtor association and the MLS are separate. He says he has heard from other brokers and agents around the country who’d like to drop their Realtor membership but can’t because the local Realtor association controls the MLS. Russell & Jeffcoat’s status as an independent company also played a part in its decision. Companies affiliated with national franchises typically don’t have the option of dropping their Realtor memberships. Some in Columbia were shocked by the news that the market’s largest real estate firm had dropped out of NAR,

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especially because Russell & Jeffcoat is a traditional firm with decades of Realtor membership — it hardly fits the maverick profile of a company that would want to rock the boat. But there’s little sign of an exodus from NAR. While the five-year downturn in the housing market has forced many in the industry to scrutinize every expense, the vast majority of the industry’s firms have kept their Realtor affiliation.

Does membership matter to consumers? Many in the industry consider NAR membership as a credential that vouches for a company’s ethics. But Roe dismisses the notion that a firm filled with Realtors behaves more honestly than a company of agents who aren’t Realtors. “Anyone would be naive to think anyone would be eth“The consumer doesn’t ical simply because they know the difference signed a document saying between a real estate they would be,” he says. agent and a Realtor.” To fill the gap left by Realtor membership, Russell & Jeffcoat joined the local Better Business Bureau, which Roe says has ethical guidelines that are similar to NAR’s. What’s more, Roe says, “The consumer doesn’t know the difference between a real estate agent and a Realtor.” Those might be hard words to hear for Realtors, who for years have bought ads urging consumers to hire Realtors. While finances spurred Russell & Jeffcoat to drop its Realtor memberships, Roe also chafes at what he considers the fundamental unfairness of NAR’s all-or-nothing rule. Trade groups for doctors, lawyers, and home builders don’t impose those sorts of rules on their profession, and Roe says NAR shouldn’t either.

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“It’s just not right to make it mandatory,” he says. As the boss of a company full of independent contractors, Roe says he can’t even compel agents to show up for sales meetings, let alone pay for a membership in a trade association. Even so, Roe doesn’t have hard feelings toward NAR or his local Realtor

association. He says the fair thing to do would be for Realtor membership to be voluntary so Realtors and non-Realtors could work for the same brokerage. “It’s a great organization,” Roe says. “I’d be the first person back in if it was voluntary.” Contact: Ron Roe, Russell & Jeffcoat Real Estate, REBI 803-779-6000.

Regulatory Trends

Economist’s study finds real estate competition alive and well

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An economist took an exhaustive look at the state of competition among real estate brokerages and found surprisingly little concentration — and no fodder for critics who accuse the industry of engaging in anti-competitive practices. Jason Beck, professor of economics at Armstrong Atlantic State University in Savannah, GA, looked at 90 markets throughout the country. He studied the market share of each firm in each market in 2007 and 2009 and used the Herfindahl-Hirschman Index, a commonly used measure of market concentration, to gauge how fiercely brokers fought for market share. “I was somewhat surprised that concentration was as low as it was,” Beck says. “Only in a few instances would I say it was to the extent that one would start to question the level of competitiveness.” A couple exceptions: In Blue Springs, MO, Reece & Nichols increased market share from 19.8 percent in 2007 to 34 percent in 2009. And in LaPine, OR, RE/MAX Sunset Realty’s share climbed from 12.6 percent to 30.5 percent. But Des Moines, IA, saw the opposite trend. Market leader Iowa Realty www.BrokersInsider.com

saw its market share decline from 53 percent in 2007 to 29 percent in 2009, Beck says. Iowa Realty enjoyed a market share of more than 60 percent, a level of dominance that brought lawsuits from smaller competitors, including Next Generation Realty and a Coldwell Banker affiliate. The Iowa Supreme Court in 2004 sided with Iowa Realty, which is owned by HomeServices of America. But Brennan Buckley of Iowa Realty disputed Beck’s findings. He said the company’s market share has held steady at 45 percent in recent years. High levels of concentration were most common in small markets and least common in large cities. But it was hard to generalize. Carlsbad, NM, became less competitive, but Roswell, NM, became more competitive. Beck says he took an unbiased look at real estate competition and came away finding little evidence to support claims that there’s little competition in the industry. “I really can’t throw any fuel on that fire,” Beck says. Contact: Jason Beck, Armstrong Atlantic State REBI University, 912-344-2536.

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Agency Marketing

Social media-only marketing builds buzz, but no sale In a marketing experiment that’s a sign of the times, the seller of a pricey property in Wrightsville Beach, NC, attempted to sell the home by getting the word out only on social media. (See REBI, February 2011.) The gimmick generated plenty of buzz in the real estate community in Wrightsville Beach. But it didn’t bring what listing agent Randy Williams really wanted, which was a buyer. “I did not get a single lead,” says Williams, broker in charge at Hardee Hunt & Williams Gulfstream Properties. “Not one.” It was the seller’s idea to try the social marketing strategy, Williams says. Because there was no cost to the listing agent, Williams didn’t object. For a week, the property was marketed only on

social media but not in the MLS or on Realtor.com. Williams isn’t necessarily surprised with the outcome. The house is listed at $3.6 million, and Williams says it’s unlikely that a buyer would drop that kind of cash solely based on seeing a property on a social media site. “I don’t care how much money you have, you’re not going to spend $3.6 million because you saw something on Facebook,” he says. Not that Williams is down on social media. He says Twitter, YouTube, and Facebook are important marketing tools. “It didn’t sell a house, but it’ll be one component of marketing,” Williams says. And it might make more sense for lower-priced properties. Contact: Randy Williams, Hardee Hunt & Williams Gulfstream Properties, 910-256-6998. REBI

Selling

To move luxury listings, follow these power marketing rules High-end properties are beginning to move again, thanks to a resurgent stock market and an improving economy. But selling pricey properties remains a specialized skill, one that requires agents to tap into a deep well of marketing strategies. David Michonski, former head of Coldwell Banker Hunt Kennedy in New York, notes that luxury buyers often are millionaires who don’t need to buy. That means it’s up to the agent to create a sense of urgency through marketing. REAL ESTATE BROKER’S INSIDER

Michonski offers these tips for approaching high-end sales: Power Marketing Rule: Always find two or more buyers — or at least create that perception. By their very nature, luxury listings appeal to only a small number of buyers. If only one buyer is interested in a property, the seller is at the mercy of that buyer. The ideal situation for a seller is an auction where several motivated buyers compete for a property, and push the sale price up. If there’s only one buyer, on the other hand, there’s little sense of www.BrokersInsider.com

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urgency, and no competition. “One buyer does not a market make,” Michonski says. However, it’s not always necessary to have more than one buyer, so long as you create the perception of competition. For instance, the listing agent’s reputation for success can create urgency. Michonski always told buyers of his 93 percent success rate. Timing also is crucial in creating the perception of competition. In the first few days that a listing becomes available, buyers are uncertain about the results of your marketing and fear that they’ll be vying with other bidders. “The threat of the “One buyer does not unknown often moves buyers a market make.” to bid fast and bid high,” Michonski says. “This threat is only present for the first few days of a listing, when the buyer is pained by the insecurity of not yet knowing the results of a luxury agent’s marketing efforts.” Power Marketing Rule: Create a market. Anyone can put a listing in the MLS, hold an open house, and place some ads. But luxury markets are thin and illiquid, so a successful marketing campaign requires you to create a market where none exists. Many of the tools you’ll use are no secret. They include everything from hiring professional photographers to launching a publicity campaign. However, skillful use of advertising, brochures, and other tools can help create a market for a property that might have only one or two buyers. Power Marketing Rule: Set flexible price expectations. No matter how certain you are of a property’s value, don’t tell sellers to expect a specific price. The sale price will depend on a variety of difficult-to-control factors, including market conditions, the number of buyers, and what happens in the stock market. 8

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You’ll suggest a list price, and the seller invariably will push to raise that price. But be sure to talk in terms of “valuation bands” — a range of prices that the property is likely to fetch. Here’s an example of how to break down a hypothetical property’s value: • Land value: $700,000 to $900,000 • Improvements: $1.75 million to $2.45 million, based on a 7,000-squarefoot house at a construction cost of $250 to $350 per square foot • Pool: $75,000 to $100,000 • Driveway: $35,000 to $45,000 • Total value: $2.56 million to $3.5 million • Total value after a 25 percent discount for the age of the improvements: $2.1 million to $2.9 million. Power Marketing Rule: Orchestrate multiple bids simultaneously. In the mainstream market, a home purchase meets the buyer’s need for shelter. Whether it’s motivated by a new job, a growing family, or a divorce, there’s typically some factor that’s pushing the buyer to buy. The luxury market is different. These buyers don’t need to buy. In fact, they might consider the process of looking for homes an entertaining hobby. To add urgency, you need to create simultaneous bids that will sweep buyers into action. Michonski says the most common complaint he heard from buyers during his 30 years of managing real estate offices was that they weren’t aware of a competing offer. You should clearly communicate the existence of other buyers, because this will not only create higher levels of satisfaction among buyers, it also pushes up the price. Luxury buyers are savvy and valueconscious, and the emotions of a bidding war are the only way to get them to pay more. Contact: David Michonski, www.UnlockingTheGate.com. REBI

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Management Tips

Three steps for getting your agents into action The long downturn in the market has left many agents feeling discouraged, defeated, and depressed. The nation’s housing market has been in the doldrums for nearly five years, so it’s no surprise that your agents don’t always feel energetic about their jobs. Coach and former broker Carla Cross offers three tips to get your agents out of their funk: • No more excuses. Achieving new levels of performance requires the courage to take a risk, and there’s always the danger of failure. For most of us, our subconscious provides a variety of excuses that masquerade as “reasons” not to act. Among the excuses: I can’t do that, because I don’t know enough. I’m not organized enough. I’m not perfect enough. I don’t want to act too soon and risk making a mistake.

• Clear out the poor performers. Nothing demoralizes agents and undermines performance as much as an office stocked with poor performers. Their lack of success is contagious for mid-range performers. And top producers would rather work for another company than for one that lets laggards hang around. • Encourage action, not just talk. Have you tried to motivate someone into action? Did you pump them up when they were in your office, only to find them deflated later? Cross calls it the “immediate fizzle effect.” Yes, a motivational pep talk briefly makes agents feel better, but mere talk doesn’t provide lasting motivation. Action does. As psychologist Jerome Bruner says, “You’re more likely to act yourself into feeling, than feel yourself into action. Contact: Carla Cross, www.carlacross.com.

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Industry Trends

Short sales, listing in Realtor.com create compensation confusion Commission disputes always are a thorny issue, and two new trends — the increased frequency of short sales and the rise of the Internet as a source of consumer information — create areas of potential misunderstanding. Short sales are a common source of confusion, in part because they’re so new, and in part because the lender must approve the sale price but isn’t a party to compensation agreements between the principals and the agents.

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“We’re having huge problems with this across the country,” says Lynn Madison of Lynn Madison Seminars in Kildeer, IL. Madison and Bruce Aydt, general counsel for 450-agent Prudential Alliance Realtors in St. Louis, offer the following case study that illustrates how misunderstandings can create disputes in short sales. “Broker Brenda” lists a hypothetical short sale for $239,900, and in the MLS

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offers a 3 percent commission for a cooperating broker. “Agent Daniel” brings a buyer who agrees to pay $232,000. After an inspection, the buyer asks for a $15,000 credit at closing, and the lender accepts the $217,000 sale price, but only if the agents cut their compensation by $5,000. At closing, total agent compensation is $10,190 (7 percent of $217,000, less $5,000), with Brenda getting $6,180 and Daniel’s firm getting $4,010. Daniel is upset to learn that Brenda is getting a larger commission than he receives. After closing, Daniel files an arbitration petition. He argues that he’s owed $8,120, or half of a 7 percent commission on a $232,000 sale. So does Daniel get the $4,010 that Brenda allotted for him, or is he due the $8,120 he wants? In fact, both sides are wrong, Aydt and Madison say. An arbitration panel would decide that Daniel is owed more than $4,010, but not the full $8,120. While Daniel might argue that he should receive an even share of the commission, in fact he’s entitled to only the 3 percent he was promised in the MLS. “The cooperating broker is not entitled to any particular split of what the listing agent gets,” Aydt says. “That assumption is still in the marketplace.” However, Brenda is not allowed to decide that Daniel must take less than promised because the lender reduces the commission or the price. So an arbitration panel would decide that Daniel is owed 3 percent of $232,000, or $6,960. “He did not agree to anything else,” Aydt says. Short sale commissions have become a common area for conflict. To avoid disputes, the listing agent must disclose in the MLS that it’s a potential short

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sale. And if the listing agent wants to cut the buyer agent’s commission based on lender contingencies, the listing agent must disclose how any lender-imposed reduction will be apportioned.

Another source of confusion: Listings on Realtor.com Realtor.com isn’t an MLS, and it therefore makes no guarantee that an agent will get paid. Aydt and Madison offer this scenario: “Broker Donna’s” buyer finds a property on Realtor.com and wants to see. It’s listed by “Broker Jack.” Although it’s out of Donna’s marketplace, the listing is in her MLS, so she makes arrangements to show it. Her buyer doesn’t like the listing but sees another home down the street also listed by Broker Jack. This property is not in Donna’s MLS. Donna calls Jack and makes arrangements to show it. The buyer makes a deal for the property — but at closing, Donna gets not a commission check but a hearty handshake and an atta-girl. Morally, perhaps, it would be nice for Jack to pay Donna, but legally, he isn’t required to do so. Donna files for arbitration asking for her commission, because she was the “procuring cause” of the sale. Her arbitration is dismissed by the grievance committee with no hearing. “We have people who believe that Realtor.com is an MLS,” Madison says. “We have had people who have actually argued this: ‘It was in Realtor.com, so they should pay me.’ There is no offer of compensation being made through Realtor.com.” Contacts: Lynn Madison, Lynn Madison Seminars, 847-719-1992, www.lynnmadison.com; Bruce Aydt, Prudential Alliance Realtors, 635-537-2361, REBI www.bruceaydt.com.

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CLOSINGS Market rebounds in some places, still bottoming in others Home prices increased in 78 of the nation’s 152 metropolitan areas in the fourth quarter, the National Association of Realtors says. However, 71 metro areas saw prices decline compared to the fourth quarter of 2009, and prices were unchanged in three markets. Job growth was a major factor in price appreciation in metro areas such as Washington, DC, where the median existing single-family home price rose 8.1 percent, Boston (up 4.2 percent) and Austin, TX, (up 4.1 percent). NAR predicts further job growth in 2011.

Foreclosures slowed in January Foreclosure filings were reported on 261,333 U.S. properties in January, a 1 percent increase from the previous month but a 17 percent decrease from January 2010, according to RealtyTrac.

One in every 497 housing units received a foreclosure filing during the month. January marks three consecutive months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months when the total exceeded 300,000. However, RealtyTrac CEO James J. Saccacio says that’s because lenders are bogged down in reviewing procedures, resubmitting paperwork, and formulating legal arguments, not because housing has recovered.

Nextage Realty, Casa Latino merge Nextage Realty International has taken over most of the offices of the Casa Latino franchise, and its locations will take on the Nextage Realty brand. Casa Latino, which had offices in 13 states, was created in 2005 to serve the Hispanic market. The merger is part of Nextage Realty’s plan to create a national presence. Based in Jones Creek, GA, Nextage is a multilevel marketing company that ISSN 0894-7651

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MARCH 2011

CLOSINGS gives agents a cut of the commissions generated by agents they recruit.

Median list price dips, ZipRealty says The median list price of homes in 26 markets fell 3.9 percent in December from November. The dollar value of that dip is $225,434, according to ZipRealty. California markets showed the largest month-to-month markdown, with the median list price in San Francisco dropping $35,195, followed by San Diego ($19,100) and Orange County ($17,100). In nine markets, more than half of homes for sale had at least one price reduction. They were Phoenix, Jacksonville, Minneapolis, Tucson, Orlando, Chicago, Seattle, Baltimore, and Orange County.

OSHA fines South Carolina broker The Occupational Safety and Health Administration has ordered CMM Realty Inc. of Columbia, SC, to reinstate a worker who was fired for whistleblowing. The company must pay back wages of more than $50,000 and interest plus $16,222 in compensatory damages. The worker was terminated after he expressed concerns to management and two state agencies about exposure to asbestos at one of the company’s condominiums in Columbia., S.C.

Mortgage rates rise As the economy improved, mortgage rates rose to a nine-month high in February. The average 30-year fixed-rate mortgage cost 5.05 percent as of February 10, the highest point since April

MARCH 2011

2010, mortgage giant Freddie Mac says. In this case, rising mortgage rates could be good news for the housing market. Mortgage rates rose in response to improving productivity and falling unemployment.

Senior housing market slumps Home builder sentiment for properties aimed at the 55-and-older market fell in the last quarter of 2010 amid a continued decline in the housing market overall, the National Association of Home Builders says. “The normal course of purchasing a new home in anticipation of or upon entering retirement has been interrupted by the fall in Baby Boomers’ house values and reduction in their home equity,” says NAHB Chief Economist David Crowe. “Boomers are finding that the market for their current home remains soft and potential buyers cannot qualify for affordable mortgages. Even those with the ability to buy a new home are finding a limited selection, as builders cannot get loans to build homes.” REBI

RE/MAX consolidation continues RE/MAX offices throughout the nation continue to join forces. In the latest examples, a Cleveland RE/MAX franchisee took over three offices from another RE/MAX affiliate, and two Charlotte-area RE/MAX offices joined forces. In the Cleveland combination, RE/MAX Crossroads Properties acquired former RE/MAX Commitment offices in Canton, Stow, and New Philadelphia, OH. The new company has 120 agents and six offices. In the North Carolina merger, RE/MAX at the Lake and RE/MAX Executive Realty merged their Lake Norman offices. Contacts: Dennis Steed, RE/MAX Crossroads Properties, 440-846-4620; Laura Chilcoat, RE/MAX Executive at the Lake, 704-662-0095.

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